The 10-to- 20 Year US Treasuries, TLT, fell 1.19%, and the Zeroes, ZROZ, fell 1.36%, both to the edge of a head and shoulders pattern. Of significant note, both rose yesterday to resistance, and fell lower today.

All of the World’s Currencies with the exception of the Mexico Peso, FXM, and the Russian Ruble, XRU, manifested bearish engulfing candlesticks and fell lower. Mexico shares, EWW, rose 0.62%, as did Russia shares, XRU, 0.98%.

This Finviz Screen of the major currencies, FXA, FXE, FXM, FXC, ICN, FXB, FXS, SZR, FXF, CYB, BZF, XRU , FXY , BNZ , DBV, CEW shows that ten of the major yen based carry trades weakened, with the New Zealand Dollar, BNZ, Brazilian Real, BZF, the British Pound FXB, and the Australian Dollar, FXA, falling the most in value.

The ratio of the small cap value shares, RZV, relative to the small cap growth shares, RZG, ... RZV:RZG ... rose to what I call a “saddle up, lock and load” position, that is a pull the trigger all the way back position, suggesting that that the currency-volatile small cap value shares are "fully loaded to explode massively lower"; all I can say is "get ready for some investment shock and awe".

The chart of bonds,BND, shows that the world passed through Peak Credit on October 7, 2010 when bonds topped out at 82.93 as seen in Yahoo Finance Chart of BND. And today’s fall lower of Junk Bonds, JNK, suggests that peak investment liquidity has been achieved.

The debt deflationary bear market of April 26, 2010, that commenced with the onset of the European Soveign Debt Crisis, recommenced October 19, 2010, when the World Shares, ACWI, fell to 44.20, and the S&P, SPY fell to 116.73, in response to major currencies turning lower on on October 14, 2010.

International Treasury Bonds, BWX, tuned lower on October 8, and October 18, 2010, in response to the major currencies, turning lower on October 6, and October 14, 2010,

Chart of BWX, DBV, and CEW

Chart of BWX, DBV, CEW, and FXI shows that major currencies trade lower before debt turned lower and before China turned lower

Today’s fall lower in most all of the world’s currencies, is quite bearish for both stocks and bonds; and suggests that indeed a bear market has recommenced due to the fall in major currencies, DBV, and emerging currencies, CEW.

Chart shows that carry trade investment has come out of gold, GLD, and it may not be a safe haven investment until a lower price is achieved. Ths means gold mining sharesAEM, ASA and BVN represent good short selling opportunities.